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TORM plc: TORM announces new distribution policy

The combination of the 2015 Restructuring and the strong prevailing product
tanker freight rates has given TORM plc ("TORM") considerable strategic and
financial flexibility. Therefore, TORM's Board of Directors has today
approved a new distribution policy that will allow investors to benefit from
the earnings while enabling TORM to selectively invest in the fleet. The
distribution policy opens for dividends and/or share repurchases.

TORM anticipates having one fixed distribution in September 2016 of USD 25.0m.
With semi-annual distributions, this corresponds to an annualized dividend of
USD 0.783 pr. share (approx. DKK 5.10 pr. share at the present USD/DKK rate
and assuming 63.8m shares) and an annualized dividend yield of 6.0% based on
yesterday's share price (11 May 2016).

Hereafter, TORM intends to semi-annually distribute 25 to 50% of net income.
The distribution policy will be periodically reviewed and considered in light
of TORM's capital structure, strategic developments, future obligations,
market trends and shareholder interests.

In addition to dividends, TORM will also consider share repurchases.
Currently, TORM has authorization to acquire treasury A shares equivalent to
a total of 10% of the Company's share capital.

During May 2016, TORM will acquire up to 4.1% of the A shares in TORM A/S as
part of the initiated squeeze-out (cf. company announcement no. 7 dated 26
April 2016). The share purchase may total a consideration of up to approx.
USD 35m and will be accretive for the TORM shareholders.

"TORM is striving to create total shareholder returns above peer average in
the product tanker space. With the strong operational platform and the TORM
Corporate Reorganization in place, we are pleased to announce a new
distribution policy. The Board of Directors believes that this policy strikes
a balance between retaining financial and strategic flexibility while
allowing our shareholders to directly benefit from TORM's positive financial
says Chairman Christopher Boehringer.


Jacob Meldgaard, Executive Director, tel.: +45 3917 9200 27 Old
Gloucester Street
Mads Peter Zacho, CFO, TORM A/S, tel.: +45 3917 9200 London WC1N 3AX,
United Kingdom
Christian Søgaard-Christensen, IR, tel.: +45 3076 1288 Tel.: +45
3917 9200 / Fax: +45 3917 9393


TORM is one of the world's leading carriers of refined oil products. The
Company operates a fleet of approximately 80 modern vessels with a strong
commitment to safety, environmental responsibility and customer service. TORM
was founded in 1889. The Company conducts business worldwide. TORM's shares
are listed on Nasdaq Copenhagen (ticker: TRMD A). For further information,
please visit


Matters discussed in this release may constitute forward-looking statements.
Forward-looking statements reflect our current views with respect to future
events and financial performance and may include statements concerning plans,
objectives, goals, strategies, future events or performance, and underlying
assumptions and statements other than statements of historical facts. The
words "believe," "anticipate," "intend," "estimate," "forecast," "project,"
"plan," "potential," "may," "should," "expect," "pending" and similar
expressions generally identify forward-looking statements.

The forward-looking statements in this release are based upon various
assumptions, many of which are based, in turn, upon further assumptions,
including without limitation, management's examination of historical
operating trends, data contained in our records and other data available from
third parties. Although the Company believes that these assumptions were
reasonable when made, because these assumptions are inherently subject to
significant uncertainties and contingencies that are difficult or impossible
to predict and are beyond our control, the Company cannot guarantee that it
will achieve or accomplish these expectations, beliefs or projections.

Important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of the world economy and currencies, changes in charter hire rates
and vessel values, changes in demand for "ton miles" of oil carried by oil
tankers, the effect of changes in OPEC's petroleum production levels and
worldwide oil consumption and storage, changes in demand that may affect
attitudes of time charterers to scheduled and unscheduled dry-docking,
changes in TORM's operating expenses, including bunker prices, dry-docking
and insurance costs, changes in the regulation of shipping operations,
including requirements for double hull tankers or actions taken by regulatory
authorities, potential liability from pending or future litigation, domestic
and international political conditions, potential disruption of shipping
routes due to accidents, political events or acts by terrorists.

In light of these risks and uncertainties, you should not place undue reliance
on forward-looking statements contained in this release because they are
statements about events that are not certain to occur as described or at all.
These forward-looking statements are not guarantees of our future
performance, and actual results and future developments may vary materially
from those projected in the forward-looking statements.

Except to the extent required by applicable law or regulation, the Company
undertakes no obligation to release publicly any revisions to these
forward-looking statements to reflect events or circumstances after the date
of this release or to reflect the occurrence of unanticipated events.

10-2016 - TORM announces new distribution policy - US


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: TORM plc via Globenewswire


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